Correlation Between Beijing Shanghai and Anji Foodstuff
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By analyzing existing cross correlation between Beijing Shanghai High Speed and Anji Foodstuff Co, you can compare the effects of market volatilities on Beijing Shanghai and Anji Foodstuff and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Shanghai with a short position of Anji Foodstuff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shanghai and Anji Foodstuff.
Diversification Opportunities for Beijing Shanghai and Anji Foodstuff
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Anji is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shanghai High Speed and Anji Foodstuff Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anji Foodstuff and Beijing Shanghai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Shanghai High Speed are associated (or correlated) with Anji Foodstuff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anji Foodstuff has no effect on the direction of Beijing Shanghai i.e., Beijing Shanghai and Anji Foodstuff go up and down completely randomly.
Pair Corralation between Beijing Shanghai and Anji Foodstuff
Assuming the 90 days trading horizon Beijing Shanghai High Speed is expected to generate 0.51 times more return on investment than Anji Foodstuff. However, Beijing Shanghai High Speed is 1.96 times less risky than Anji Foodstuff. It trades about 0.04 of its potential returns per unit of risk. Anji Foodstuff Co is currently generating about 0.0 per unit of risk. If you would invest 499.00 in Beijing Shanghai High Speed on September 4, 2024 and sell it today you would earn a total of 104.00 from holding Beijing Shanghai High Speed or generate 20.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shanghai High Speed vs. Anji Foodstuff Co
Performance |
| Timeline |
| Beijing Shanghai High |
| Anji Foodstuff |
Beijing Shanghai and Anji Foodstuff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shanghai and Anji Foodstuff
The main advantage of trading using opposite Beijing Shanghai and Anji Foodstuff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shanghai position performs unexpectedly, Anji Foodstuff can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anji Foodstuff will offset losses from the drop in Anji Foodstuff's long position.| Beijing Shanghai vs. Jiangsu Xinri E Vehicle | Beijing Shanghai vs. Ping An Insurance | Beijing Shanghai vs. Zoje Resources Investment | Beijing Shanghai vs. Peoples Insurance of |
| Anji Foodstuff vs. Sunwave Communications Co | Anji Foodstuff vs. Wuhan Yangtze Communication | Anji Foodstuff vs. Jiangxi Hengda Hi Tech | Anji Foodstuff vs. Shenzhen Zhongzhuang Construction |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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